Industrial Tribunals Northern Ireland Decisions

THE INDUSTRIAL TRIBUNALS

 

CASE REF:  1106/10

  

CLAIMANT:                          Anne Elizabeth Herdman

 

RESPONDENT:                  Fred Cameron

 

 

DECISION

 

The tribunal is satisfied that the claimant was dismissed by reason of redundancy and that the respondent failed to make a redundancy payment and failed to pay notice pay. The tribunal therefore orders the respondent to pay to the claimant the sum of £3,800.00 by way of basic award and £5,700.00 by way of compensatory award uplifted by £570.00 for failure to comply with the statutory dismissal procedure. The respondent is therefore ordered to pay to the claimant a total of £10,070.00.

 

 

Constitution of Tribunal:

 

Chairman (sitting alone): Mr Trevor Browne

 

Appearances:                      

 

The claimant appeared on her own behalf.

 

The respondent did not attend and was not represented. His failure to put in a response in time or at all or to request an extension of time to do so debarred him from taking any part in the proceedings.

 

THE ISSUE

 

1.         The tribunal had to determine if the claimant had been dismissed from her employment by the respondent by reason of redundancy and, if so, whether the respondent should be ordered to make a redundancy payment to her. The tribunal also had to determine whether the claimant was entitled to receive any notice pay on foot of her dismissal or to receive any other payments arising from her dismissal.

 

FINDINGS OF FACT AND LAW AND CONCLUSIONS

 

2.         The tribunal made the following findings of fact from the unchallenged evidence and information provided by the claimant, whom the tribunal found to be an entirely honest and reliable witness.

3.         The claimant was employed by the respondent from May 1999 until the respondent ceased trading on 15 January 2010, for which reason the tribunal is satisfied that the claimant was dismissed by reason of redundancy for the purposes of Article 174 of the Employment Rights (Northern Ireland) Order 1996.

4.         The tribunal is further satisfied that the claimant was not paid the notice pay to which she was entitled.

5.         The tribunal has found no evidence of any compliance by the respondent with his obligation to follow a procedure under the Employment (Northern Ireland) Order 2003. The dismissal is therefore automatically unfair. In the absence of any grounds not to do so, the tribunal consequently is compelled by virtue of Article 17 of the 2003 Order to increase any compensatory award by at least 10%.

 

THE AWARD

 

BASIC AWARD

 

6.         10 (years’ completed service) x £380.00 (gross maximum pay permitted at the relevant time)   =   £3,800.00

 

COMPENSATORY AWARD

 

7.         The tribunal considers that despite the automatic unfair dismissal because of the failure by the respondent to follow the statutory dismissal procedure, the just and equitable compensation is that arising from the true reason for the dismissal, namely redundancy.

 

8.         By virtue of Article 197 of the Employment Rights (Northern Ireland) Order 1996, the calculation therefore is 1.5 weeks’ gross pay multiplied by the 10 years’ completed service, namely:

 

£380.00   x   1.5   =   £570.00   x   10   =   £5,700.00

 

9.         The tribunal considers that the statutory minimum uplift of 10% for failure by the respondent to comply with the statutory dismissal procedure is appropriate; therefore:   £5,700.00   x   10%   =   £570.00
                                                            +   570.00  

                                                                  =   £6,270.00. 

 

Whilst the claimant’s conduct was discreditable, his reason for peremptorily closing the business appears to have been because of financial difficulties. The tribunal therefore considers it would be inappropriate to impose an additional financial burden other than that prescribed by the 2003 Order.

 

10.       This is a relevant decision for the purposes of the Industrial Tribunals (Interest) Order (Northern Ireland) 1990.

 

 

Chairman:

 

 

Date and place of hearing: 8 December 2010, Belfast

 

Date decision recorded in register and issued to parties: